Iran Khodro, Mercedes-Benz cooperation contract nearly finalized

A cooperation contract between major Iranian automaker Iran Khodro and Mercedes-Benz has become nearly finalized and will be signed within the next two months, an official said on Friday.

Addressing the general meeting of Iran Khodro shareholders, Managing-Director of Iran Khodro Hashem Yekkeh Zare said that based on the new contract, the two automakers will establish two joint companies.

He said that one of the joint companies will be a production site and the other one will be a site active in the area of sales and after-sales services.

In the production site, Iran Khodro will have 51 percent share and the rest 49 percent will belong to Mercedes-Benz, Yekkeh Zare said, adding that in the second joint company, Iran Khodro will have 49 percent of shares, while 51 percent of shares will go to Mercedes Benz.